Life insurance comes in three basic types, whole life, universal life—also known as UL—and Term. Each of those types has multiple modifications, depending on the company. Thus, while we can educate you here, it is still important to work directly with a licensed representative of a company of your choice. The company is not legally responsible if you purchase a contract that contains clauses you did not understand. It is your responsibility to understand the type of insurance you purchase as well as any particular variations created by the company.

The type of insurance you need depends both on your current needs and on your future goals. If you are putting money aside for retirement and have plans in place for final expenses, you may only need a policy that would provide for your family while the children are young. In that case, a Term policy would be fine. If, however, you want some choices in the future, including the possibility of cash that can be added to your retirement assets, you should consider an Annuity.